Has Current Indian Economy Affected the Salary?

It is quite unfortunate that Indian economy is on a downhill slide since 2010. Just three years ago, in 2010, the annual growth rate was 9%, which has come down to just the halfway mark in 2013. Rising prices and increasing interest rates are making life difficult for Indians. Naturally, it is having an adverse effect on the wages and salaries too. Job prospects are also affected because of the slowing economy. The manufacturing sector has been the worst hit and as a result, the small business owners and manufacturers are having a tough time. According to a car parts manufacturer based in Mumbai, demand has severely declined last year. The inflation is impacting the costs in a big way, so both imported items and domestically sourced materials are becoming extremely expensive. The steel prices have almost doubled within a few years. This is just one aspect of the increasing problems of the entrepreneurs and manufacturers. The manufacturers are also not getting any help from the government and instead heavy taxes are being imposed upon them, which is making them less competitive even in the domestic market. To counter the challenge of latest innovations in the automobile sector, the manufacturers are supposed to buy new machine tools. But, the demand is fluctuating and any such investments can be risky. Even the state governments are neglecting these industries because of obvious reasons. Until and unless, there is a national development program similar to the one implemented by China, which is aimed at helping and boosting small industries, there can’t be a noticeable change. There is extreme level of bureaucracy and red tape existing in India, which hinders the approval processes of new projects. The big and medium industries are facing these issues. As a result, the employment prospects are getting affected, because industries are growing at a very slow rate. The expansion activities are almost frozen. Though, Indian government is trying to recover from the disastrous outcomes of the economic slowdown, but their ability to take any concrete action is severely weakened by their damaged reputation due to a series of high-profile corruption cases within the government. Because of the political reasons, and the forthcoming elections in 2014, all major schemes have been frozen. The growth rate in India is slowest in the entire decade; China and Indonesia have already surpassed Indian growth rate. Most of the Asian economies have already recovered from the global economic crisis, but there are still no signs of improvement in India. Many countries in Asia have already achieved their pre-crisis growth rates, but India is still below that. In order to create jobs, a high growth rate is needed. Furthermore, the factor which is also worsening the situation is the population growth rate. At present, the population growth rate in India is thrice to that of China. To make things worse, the price of the vegetables have multiplied up to five times. So, the slight increment in the salary is neutralized by the rising prices. The companies are looking for the candidates, who are perfect and can do multitasking. Getting a job was comparatively much easier just a year or two ago. Companies are no more interested to recruit average or mediocre people. So, there is no possibility of a positive change in the salary trends in the current scenario in India.